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Deferred Costs, Capitalized, Prepaid, and Other Assets
3 Months Ended
Oct. 31, 2011
Deferred Costs, Capitalized, Prepaid, and Other Assets  
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

NOTE 7 - PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

Prepaid expenses and other current assets at October 31, and April 30, 2011 totaled $1,349,213 and $62,664, respectively. As of October 31, 2011, prepaid expenses and other current assets includes $717,097 deposit for apartment units, $504,309 prepayments to suppliers for merchandise that had not been shipped to us and services that had not been provided to us and $127,807 for employee advances. We recognize prepayments in inventory as suppliers make delivery of goods, and as an expense when providers provide the services.

 

On August 25, 2011, Qufu Natural Green Engineering Co., Ltd. entered into an agreement with Qufu Jinxuan Real Estate Development Co., Ltd., an unaffiliated third party, to purchase thirty apartment units in China for use certain employees. The total area of the apartment complex units is 41,979 square feet, with 6,458 square feet of storage area for a total purchase price of RMB15,120,000 (approximately $2,390,325) (the “Purchase Price”). Under the terms of the agreement, the apartment units are expected to be delivered by December 30, 2012. We prepaid 30% of the Purchase Price, approximately $717,097, upon signing the agreement on August 25, 2011. An additional 50% of the Purchase Price, or approximately $1,195,162, will be due in December 2011, with the balance, or approximately $478,066, upon completion of the ownership documents and transfer of the apartment units to us.

 

Prepaid expense and other current assets at April 30, 2011 of $62,664 represent prepayments to suppliers for merchandise that had not been shipped to us, services that had not been provided to us and employee advances.